A former Middlesex County man involved in a $16 million insurance fraud scheme was sentenced to two years in federal prison yesterday.
http://liarcatchers.com/fraud_investigation.html
Edward Dombrowski, 47, now an Acworth, Ga., resident, previously pleaded guilty in federal court to one count of conspiracy to commit wire fraud. He was ordered yesterday to pay nearly $1 million in restitution and serve three years of post-release supervision, U.S. Attorney Paul J. Fishman said.
Dombrowski and his co-conspirator, 53-year-old Stephen Locrotondo of Bridgewater, orchestrated a multi-layered scheme that involved ripping off several companies by falsely claiming they had created a group life insurance policy for hundreds of Linden employees, according to prosecutors and court documents.
The conspiracy had several components, authorities said:
First, the employees were told they would receive free life insurance paid for by a financing company in exchange for a share of the benefits. Then, despite never finalizing a policy, the men told the finance company a $15 million premium was due, and had that money paid out to a trust they created.
Dombrowski took nearly $2 million, buying real estate, stocks and two luxury cars, Fishman said.
The men also convinced a factoring company — a firm that buys another company’s accounts receivable — to become involved, authorities said. That firm, New Jersey-based Pine Brook Funding, paid Locrotondo $1 million for commissions that he was never really owed, prosecutors said.
Locrotondo previously pleaded guilty and is awaiting sentencing.
